Author : Michael Kennedy
Publisher : Rand Corporation
ISBN 13 : 9780833013842
Total Pages : 63 pages
Book Rating : 4.0/5 (138 download)
Book Synopsis A Simple Economic Model of Cocaine Production by : Michael Kennedy
Download or read book A Simple Economic Model of Cocaine Production written by Michael Kennedy and published by Rand Corporation. This book was released on 1994 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a simple equilibrium model of the cocaine industry in Peru, Bolivia, and Colombia. The purpose of the model is to represent the fundamental economic relations that determine the size of cocaine output, and to simulate the effects on the production sector of policy initiatives or other changes in the surrounding environment. Model results include: "Crop substitution" programs will have a negligible impact on the world cocaine market. Cocaine supply control strategies that seize and destroy 70% or less of production, without limiting the total level of production, will have little impact on the market. Changes in the size of the world cocaine market have a relatively modest long-run impact on the standard of living of average workers in Peru, Bolivia, and Colombia. The results of this study are insensitive to the data uncertainties concerning the cocaine market.